The mussel farms in Malaysia are currently dependent on limited spatfall areas and facing inconsistency in the seed supply due to vagaries of nature, pollution, predators, fouling and diseases. As such, the only alternative to overcome the shortage in mussel spat supply is to opt for hatchery production. This project was aimed at producing mussel seeds on a pilot scale so that crucial factors and problems associated with hatchery production of mussel spats in the hatchery could be determined and resolved. Small scale hatchery propagation technique of the green mussel, Perna viridis had been developed at Fisheries Research Institute Pulau Sayak, Kedah since 2007. A total of 32 trials on green mussel larviculture were carried out between 2007- 2009 i.e. 8 batches in 2007, 13 batches in 2008 and 11 batches in 2009. From these trials, a total of 43 million eyed larvae were produced with an average survival rate of 6.8% (ranging from 1% to 24%). A total of 569,430 spat ranging from 0.5 to 1.0 cm in size were produced with an average setting rate of 1.6% (ranged from 0.1% to 4.4%). The average density of spat on the rope collectors were 246 spat per meter for low density (ranged from 20 to 527 spat per meter) and 1,067 spat per meter for high density (ranged from 790 to 1,752 spat per meter). Some problems encountered during larviculture were presence of ciliates and uneven spat settlement on the collectors which need to be overcome. The most serious problem was the presence of ciliates which caused heavy mortality of the mussel larvae beginning second week onwards of the culture period.